Deck 2: Ethics and Social Responsibility: Doing the Right Thing

Question 1

Ethical behavior starts with society.

Answer 1

False

Question 2

Management is an example of a stakeholder.

Answer 2

True

Question 3

Acting with integrity means that entrepreneurs do what is right no matter what the circumstances.

Answer 3

True

Question 4

________ sets behavioral boundaries for decision makers.

A)The strategic plan
B)Strategy
C)Social responsibility
D)The financial plan

Question 5

________ responsibility is how an organization responds to the needs of the many elements in society.

A)Moral
B)Investor
C)Social
D)Ethical

Question 6

________ consists of the fundamental moral values and behavioral standards that form the foundation for the people of an organization as they make decisions and interact with stakeholders.

A)Business ethics
B)Social obligation
C)Mission
D)Vision

Question 7

________ sets behavioral boundaries for decision makers.

A)The strategic plan
B)Strategy
C)Ethics
D)The financial plan

Question 8

According to the KPMG's Integrity Survey, ________ percent of workers say that they observed ethical lapses in their companies within the last year.

A)28
B)57
C)73
D)81

Question 9

The various groups and individuals who affect and are affected by a business are called ________.

A)stockholders
B)stakeholders
C)owners
D)managers

Question 10

The law is the narrowest level of ethical standards.

Question 11

________ is a branch of philosophy that studies and creates theories about the basic nature of right and wrong, duty, obligation, and virtue.

A)Semantics
B)Ethics
C)Religion
D)History

Question 12

Which of the following is not a stakeholder for an organization?

A)Creditors
B)Employees
C)Suppliers
D)All of the above are stakeholders.

Question 13

Ethical behavior is doing what is ________.

A)"right"
B)"profitable"
C)"credible"
D)All of the above

Question 14

________ is/are the narrowest level of ethical standards.

A)The law
B)Organizational policies and procedures
C)Social responsibility
D)The moral stance

Question 15

Ethical behavior is doing what is "right."

Question 16

Social responsibility is a branch of philosophy that studies and creates theories about the basic nature of right and wrong, duty, obligation, and virtue.

Question 17

There are ________ levels of ethical standards.

A)1
B)2
C)3
D)4

Question 18

Ethics and social responsibility simply set behavioral boundaries for decision makers.

Question 19

The three parts of the triple bottom line are ________.

A)processes, profits, and people
B)profit, people, and planet
C)processes, profit, and predominance
D)profit, processes, and planet

Question 20

Business ethics is a sensitive and highly complex issue, but it is not a new one.

Question 21

What is ethics and how is it different from social responsibility?

Question 22

A company's culture can serve either to support or undermine its employees' concepts of what constitutes ethical behavior.

Question 23

Who are an organization's stakeholders and why are they important?

Question 24

What are the steps in establishing an ethical framework?

Question 25

A strong determinant of moral behavior is training.

Question 26

Describe briefly the three levels of ethical standards.

Question 27

Immoral managers purposely violate law and ethical standards.

Question 28

Every business influences and is influenced by a multitude of stakeholders.

Question 29

Entrepreneurs build the foundation for ethical decision making by understanding how their personal values come to life in business situations.

Question 30

The triple bottom line covers "profits, products, and planet."

Question 31

Amoral managers see the law as a minimum standard for ethical behavior.

Question 32

Immoral management is the polar opposite of ethical management.

Question 33

Organizational policies and procedures include a broader definition of ethical standards that go beyond what is defined by the law.

Question 34

Mini-Case 2-1: Doing "good" but not doing the "right" thing
Ed and Marci Buchanan are spouses and partners in a business called "Flags Unlimited." They made and sold a variety of national flags in various shapes. About 40 percent of their total revenues came from a single chain retailer, MegaMart USA that owned 798 stores throughout the United States. When Ed and Daisy started their company, their son's classmate's father was a senior buyer at MegaMart USA. The buyer, Arturo Higuain, encouraged Ed and Daisy to submit a bid to MegaMart USA and he helped the couple establish the relationship that led to subsequent recurring sales at the retailer. Higuain's wife, Lupe, was the head of the school's PTA and in charge for fund raising. Without Arturo's asking, the Buchanans started contributing significant sums of money to the PTA. Arturo never discouraged them from contributing. In a cost cutting move, Arturo was laid off from MegaMart USA and in his place, Cindy Carmichael became the buyer who interacted with the Buchanans. Cindy hinted to the Buchanans that there were other vendors willing to supply flags at a lower price than the Buchanans but that if they would contribute to the rebuilding of her (Cindy's)community's softball park, they would continue to sell their product at MegaMart USA.
Did the Buchanans act ethically in contributing to the school's PTA?

Question 35

Employees' moral stance is the broadest and most fundamental definition of ethical standards.

Question 36

What is the difference between immoral and amoral management?

Question 37

Companies really are not ethical or unethical, individuals are.

Question 38

Ethical behavior has no impact on a company's bottom line.

Question 39

Actions that are legal, however, may not be ethical.

Question 40

In general, stakeholders have consistent demands.

Question 41

Practices that are illegal in one country may be perfectly acceptable, even expected, in another.

Question 42

________ may be the result of failing to realize that an ethical dilemma exists, or it may arise from a variety of mental defense mechanisms.

A)Dishonesty
B)Criminal behavior
C)Irresponsibility
D)Moral blindness

Question 43

The driving force behind immoral management is ________.

A)the law
B)culture
C)greed
D)education

Question 44

Studies show that companies with strong ethical cultures experience fewer ethical violations than those with weak ethical cultures.

Question 45

According to the ________, one should "treat other people the way you would like them to treat you."

A)television test
B)utilitarian principle
C)family test
D)golden rule

Question 46

Contributing to a PTA and donating to build a community park are civic actions. Could they not be considered good actions because they indicate social responsibility?

Question 47

A strong determinant of moral behavior is ________.

A)profitability
B)financial success
C)training
D)short-term success

Question 48

Actions that are legal, however, may not be ________.

A)ethical
B)complex
C)profitable
D)doable

Question 49

Ethical decisions are individual decisions.

Question 50

Companies really are not ethical or unethical; ________ are.

A)goals
B)strategies
C)individuals
D)departments

Question 51

A company ________ is a statement that defines the values underlying the entire company and its ethical responsibilities to its stakeholders.

A)credo
B)annual report
C)vision
D)strategic plan

Question 52

According to the ________, one should "choose the option that offers the greatest good for the greatest number of people."

A)television test
B)utilitarian principle
C)family test
D)golden rule

Question 53

In terms of a business's responsibility to the community, the goal of a business should be to become ________.

A)a neighbor of choice
B)highly profitable
C)the investment of choice to stockholders
D)the most popular to employees

Question 54

Kant's categorical imperative states that one should act in such a way that the action taken under the circumstances could be a universal law or rule of behavior.

Question 55

A ________ is a written statement of the standards of behavior and ethical principles a company expects from its employees.

A)company credo
B)company annual report
C)company vision
D)code of ethics

Question 56

If the Buchanans agree to pay for the community park in exchange for business from Cindy, would they have acted ethically?

Question 57

According to the utilitarian principle, one should choose the option that offers the greatest good for the greatest number of people.

Question 58

The ________ is the narrowest level of ethical standards.

A)mission
B)law
C)strategic plan
D)financial plan

Question 59

The ________ merely establishes the minimum standard of behavior.

A)mission
B)law
C)strategic plan
D)financial plan

Question 60

In a recent survey, 84 percent of consumers said they seek out products from socially responsible companies whenever possible.

Question 61

Companies must recognize the independence of business and society.

Question 62

Currently, women make up about ________ percent of the U.S. workforce.

A)31
B)46
C)28
D)40

Question 63

Currently, Hispanic workers make up more than ________ percent of the workforce.

A)13
B)23
C)21
D)43

Question 64

Social entrepreneurs start businesses so that they can create innovative solutions to society's most vexing problems.

Question 65

The ________ population is the fastest-growing sector in the United States.

A)Asian
B)African-American
C)Hispanic
D)Caucasian

Question 66

By ________, the majority of the workforce in the United States will be a member of a minority.

A)2021
B)2032
C)2028
D)2019

Question 67

In 2020, members of ________ different generations will be working side-by-side in the United States.

A)2
B)3
C)4
D)5

Question 68

A company's strategic plan defines the values underlying the entire company and its ethical responsibilities to its stakeholders.

Question 69

Which of the following is not something that a small business owner should do to manage a culturally diverse workforce successfully?

A)Learn to recognize and correct other's biases and stereotypes.
B)Avoid making invalid assumptions.
C)Concentrate on communication.
D)Continue to adjust your company to your workers.

Question 70

Which one of the following is not a simple way by which small businesses can be socially responsible?

A)Encourage reinventing
B)Support local fundraisers
C)Join in community service
D)Reduce energy usage

Question 71

Workers believe the actions of those in charge more than their words.

Question 72

The three "R's" of socially responsible business are "reuse," "recycle," and "________."

A)reenergize
B)reinvent
C)reduce
D)retrofit

Question 73

What are the ethical tests for judging behavior?

Question 74

The television test says you should treat other people the way you would like them to treat you.

Question 75

________ entrepreneurs are finding the resources to tackle challenging problems such as habitat destruction, AIDS, hunger, and poverty.

A)Serial
B)Social
C)Most
D)All of the above

Question 76

The United States is moving toward a "minority ________."

A)tsunami
B)shortfall
C)majority
D)crevice

Question 77

Socially responsible business owners focus on the three Rs: reduce, reengineer, and recycle.

Question 78

A company credo offers general guidance in ethical issues.

Question 79

Social responsibility is important only for large corporations.

Question 80

There is no connection between social responsibility and profitability.